Kitron — M&A Activity 2015

Sep 9, 2015

Kitron signs frame agreement with Rheinmetall

Kitron signs frame agreement with Rheinmetall

(2015-09-09) Rheinmetall AG, a leader within automotive components and defence

equipment with head office in Düsseldorf, Germany, has selected Kitron ASA as

manufacturing partner for its global defence division.

The scope of the contract is delivery of electronics manufacturing services

(EMS), including board assembling (PCBA), box-build, test development and high-

level assembly. The contract has a value of NOK 100 million over a three-year

period starting in the fourth quarter of 2015.

Kitron's facilities in both Norway and Lithuania will contribute to the

contract.

Jens Ahlborn, Commodity manager of Rheinmetall Defence Electronics, said:

"Kitron is a high-performance supplier in the defence and aircraft industry. The

technical facilities of Kitron allow them to react quickly and flexibly to

individual customer requirements. The application of modern methods and

processes are the reason why they are the most economical and the fastest to

respond to customer request. We think that the frame agreement paves the way for

a long, successful cooperation."

Tommy P. Storstein, Corporate sales director of Kitron, said:

"This agreement demonstrates our competitiveness in a global market where

quality, competence, flexibility and delivery precision are of essential

importance. Rheinmetall is one of the leading players within the defence

industry and they expect only the highest standards from their suppliers. We are

extremely pleased that we have passed their extensive quality audits and that

they now have selected us as manufacturing partner."

For further information please contact:

Peter Nilsson, CEO Kitron ASA, tel. +47 948 40 850 or e-mail

peter.nilsson@kitron.com

Tommy P. Storstein, Corporate sales director Kitron ASA, tel. +47 93 66 99 09 or

e-mail tommy.storstein@kitron.com

Kitron is one of Scandinavia's leading electronics manufacturing services

companies for the Defence/Aerospace, Energy/Telecoms, Industry, Medical

equipment and Offshore/Marine sectors. The company is located in Norway, Sweden,

Lithuania, Germany, China and the United States. Kitron had revenues of about

NOK 1.75 billion in 2014 and has about 1 200 employees. www.kitron.com

Rheinmetall Defence is a part of the globe-spanning Rheinmetall Group. Its

products set the global standard for excellence in a wide array of disciplines:

from vehicles, force protection and weapon systems to infantry equipment and air

defence, and from network-enabled warfare capabilities to electro-optics and

simulation technology.  Last year, Rheinmetall Defence's 10 000 employees

generated annual sales of EUR2.24 billion. www.rheinmetall.com

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1934099]